Interest rates remain close to historical lows, despite the global economy growing at a steady pace, and the search for yield is becoming more and more difficult.

Although the US Federal Reserve is in a tightening cycle, this remains gradual and the central banks of many other developed countries maintain accommodative monetary policies. The European Central Bank (ECB) has not yet provided details on its plan for exiting its quantitative easing programme. But leaked comments on tapering suggests modestly higher interest rates in the next two years as the economic situation continues to improve.

Meanwhile, the Bank of England is likely to be cautious on raising interest rates. It needs to balance inflation concerns and growth prospects against an uncertain background of Brexit negotiations and a minority Conservative government.